http://www.modbee.com Warring factions in Corning casino tribe agree to election to settle dispute
BY STEPHEN MAGAGNINI
After weeks of armed standoffs, cyber attacks, allegations of multimillion-dollar theft and legal battles over who controls the tribe’s $100 million-a-year casino, warring factions of the Paskenta band of Nomlaki Indians in Tehama County have agreed to a binding general election to settle their dispute.
A federal judge in Sacramento signed off Monday on the landmark agreement, which came after a marathon three-day mediation that included 12 consecutive hours of negotiations at one stretch, said Andy Freeman, who is recognized as tribal chair by both factions. “The mediation went well. It gave us the opportunity to talk to each other and see both sides,” Freeman said. “The bottom line is the whole tribe needs to talk.”
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The dispute centered on allegations by Freeman and other council members that Tribal Economic Development Director John Crosby, a former FBI agent, misappropriated $1.4 million from tribal accounts to pay for his house, swimming pool, basketball court and remodeling work, along with several cars and $209,000 worth of gold. Tribal Treasurer Leslie Lohse, one of the ousted council members, was accused of embezzling money and misusing the tribe’s jet to attend her son Kyle’s professional baseball games.
Freeman produced canceled checks to support his allegations of wrongdoing. Crosby and Lohse, in turn, supplied employment contracts indicating they were each granted $5 million lines of credit “to either be paid forgiven or extended” after 2020 if they negotiated a new gambling compact with the state. Both said they’ve acted in the tribe’s best interests.
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Leslie Lohse is Chair of the California Tribal Business Alliance (CTBA). Robert Smith is CTBA's Treasurer. Pala is one of the Three Tribes that make up the California Tribal Business Alliance along with Paskenta and Viejas.
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